1 Surging Stock to Own for Decades and 2 We Find Risky

The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two that may correct.

Two Stocks to Sell:

Kimball Electronics (KE)

One-Month Return: +15.5%

Founded in 1961, Kimball Electronics (NYSE:KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.

Why Is KE Risky?

1. Sales tumbled by 9.7% annually over the last two years, showing market trends are working against its favor during this cycle
2. Gross margin of 8.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
3. Earnings per share have contracted by 29.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

Kimball Electronics’s stock price of $31.48 implies a valuation ratio of 31.3x forward P/E. Dive into our free research report to see why there are better opportunities than KE.

Horace Mann Educators (HMN)

One-Month Return: +2.3%

Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.

Why Do We Pass on HMN?

1. Growth in insurance policies was lackluster over the last five years as its 5.4% annual growth underperformed the typical financial institution
2. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 3.4% annually over the last five years
3. Underwhelming 6.3% return on equity reflects management’s difficulties in finding profitable growth opportunities

Horace Mann Educators is trading at $45.68 per share, or 1.3x forward P/B. Read our free research report to see why you should think twice about including HMN in your portfolio.

One Stock to Buy:

Nicolet Bankshares (NIC)

One-Month Return: +1.2%

Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE:NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.

Why Should You Buy NIC?

1. Annual net interest income growth of 18.4% over the last five years was superb and indicates its market share increased during this cycle
2. Net interest margin increased by 40.3 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
3. Earnings per share grew by 14.9% annually over the last two years, massively outpacing its peers

At $132.45 per share, Nicolet Bankshares trades at 1.6x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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